If you’re selling on Amazon, customer happiness is everything. But Amazon’s new On-Time Delivery Rate (OTDR) policy just made things harder. Starting September 25, 2024, Amazon is raising the bar on delivery performance. If you don’t keep up, your business could suffer. This guide breaks down the Amazon On-Time Delivery Rate, how it might affect you, and how to stay ahead.

1. Key Changes in Amazon’s OTDR Policy

Amazon’s new OTDR policy ensures customers get their orders fast. Here’s a look at the key updates.

a) On-Time Delivery Rate (OTDR) Requirement

From September 25, 2024, sellers must maintain at least a 90% OTDR. But aim for 95% to keep customers happy and listings active. Dropping below 90% could lead to your products being suppressed. Fewer eyes will see your listings if your OTDR drops. Amazon may step in to help but could also increase scrutiny. To avoid this, focus on delivering what you promise. Stick with reliable carriers.

b) Updated Transit Time Settings

Another big change is the new transit time settings. As of August 25, 2024, standard shipping should take no more than five days. If offering free economy shipping, allow up to eight days. This change doesn’t apply to books or DVDs. For everything else, tighten up your logistics. Sellers must review current transit times and make adjustments. Choose faster shipping options or streamline your process.

c) Automated Handling Time

Amazon is also stepping in with handling time. If your manually set handling time is too slow, Amazon will adjust it. This automation starts on September 25, 2024, and improves delivery date accuracy. It reduces late deliveries. Make sure your handling times are realistic and match actual capabilities. If Amazon’s system takes over, you could lose control. It’s better to manage this yourself.

d) New Shipping Tools and Protections

To help you meet these new requirements, Amazon is rolling out several tools:

• Shipping Settings Automation (SSA): This tool automates transit time calculations based on your preferred shipping services, helping you meet Amazon’s new standards.
• Automated Handling Time: As mentioned, this automatically adjusts handling times to better match your performance.
• Amazon Buy Shipping: By using Amazon’s shipping labels, you get OTDR protection, ensuring you’re using reliable shipping methods.

These tools are designed to make your life easier, but they also mean giving up some control over your logistics. It’s important to weigh the benefits against the potential downsides.

2. Implications of the New Policy for Online Sellers

These changes to the Amazon On-Time Delivery Rate policy could impact your business. Here’s what to watch for.

a) Maintaining a Competitive Edge

With the new 90% OTDR requirement, the pressure is on to deliver consistently. Missing this threshold could suppress your listings. This directly affects your sales and visibility. To stay competitive, tighten up quality checks and choose reliable carriers. Consider shortening your handling times.

b) Balancing Automation with Control

Amazon’s automated tools help meet standards but reduce your control. If you prefer managing logistics your way, stay vigilant. Avoid being forced into using these tools.

3. How ShipSage Can Help Sellers Navigate These Changes

Amazon is tightening delivery performance. Having a reliable fulfillment partner is crucial. Here’s how ShipSage can help you keep your Amazon On-Time Delivery Rate high.

a) ShipSage as Your FBM Partner

As Amazon imposes stricter controls, ShipSage is the perfect partner. ShipSage helps sellers maintain high OTDRs without Amazon’s automated systems. With ShipSage, you get reliable fulfillment that meets Amazon’s standards. You also keep more control over your operations.

b) Customized Logistics Solutions

ShipSage offers tailored logistics services to optimize delivery times and handling processes. This ensures you meet Amazon’s 90% OTDR requirement. Flexible, responsive logistics support keeps your operations smooth.

c) Expertise in Handling Time Management

With Amazon automating handling times, you might lose control. ShipSage’s expertise bridges the gap. ShipSage helps you reduce delays and ensures products are processed on time. This meets Amazon’s expectations.

d) Leveraging Advanced Shipping Solutions

ShipSage integrates advanced shipping solutions that align with Amazon’s new transit time rules. ShipSage optimizes route planning and carrier selection. This helps you meet the five-day transit time for standard shipping. It gives you a competitive edge on Amazon.

4. Conclusion

Amazon’s new On-Time Delivery Rate policy is a game-changer. Understand these changes and take proactive steps to keep your listings active. Happy customers lead to business growth. Whether you optimize logistics, adjust handling times, or partner with ShipSage, you can stay ahead. Don’t wait—start adapting today. Ensure your business thrives in this new Amazon landscape.